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Datalink Corporation Message Board

cool_scirocco 37 posts  |  Last Activity: 19 hours ago Member since: Oct 9, 2000
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  • cool_scirocco cool_scirocco 19 hours ago Flag

    One other thing I've been noting on ihub since the decorticator purchase was announced is the fact that although Perlowin may have gotten a good deal on the equipment, moving it will take a fair amount of time and money, and then the plant will sit idle for a good period of time, since there will be little hemp to process (maybe they can process kenaf). In today's PR, Perlowin seemed to downplay that plant a bit, talking about its use when industrial hemp becomes legal.

    I wonder what the carrying costs will be.

    Personally, as I wrote in a post earlier today on ihub (as Detective Thorne"):

    "I would also like to see Perlowin provide more disclosure in the filings, such as who the shares are being paid to, and since he's so busy converting preferred shares to commons, that beneficial holdings number is going to have to provide more info than the simple "50%" he's been using for several quarters. I want to see an actual share figure, which is something that I'm sure OTC Markets would also like to see.

    "One reason I want to see this beneficial number so badly is because it appears to me that, by loaning money to HEMP and receiving convertible shares in return, then converting the shares into common shares and repeating the process, Perlowin is slowly acquiring a larger and larger percentage of the company, while using regular shareholders (who hold a decreasing percentage) to support the price.

  • cool_scirocco cool_scirocco 19 hours ago Flag

    Over on the ihub board, I've been telling people since before the 1Q/14 filing that something like this would happen as the value of the stocks that HEMP was receiving as compensation for consulting services kept declining.

    Heck, WBXU is now on the Grey sheets, LKEN was down 75% at the end of Q2, and DEWM hasn't reported since 3Q/13.

    One can find out how many shares each company paid to HEMP, but the trouble is that nearly all of them are late with their filings. The only ones that have reported so far are REVI and the two latest companies, PPJE and that cloud doctor company. View Systems has reported, but there doesn't seem to be a reference to HEMP in their filing, and HEMP didn't mention them in today's PR. I don't know if that's an oversight or an indication that the relationship is not going well.

  • cool_scirocco cool_scirocco Aug 20, 2014 10:11 AM Flag

    Oh, and BTW, Clariske, the job of moderator on ihub is to maintain a civil forum (not like this Yahoo cesspool). Any time I delete a message, it's because fools like you don't seem to know how to write messages that don't ultimately insult the person you're responding to.

    Read the Ihub Terms of Service sometime, as well as the FAQ on deletions and how the Mods should do their job.

    You can say anything you want about a company and its officers, positive or negative, and that is acceptable. Mention the motives of a fellow ihub member, however, and the post will be deleted, even if the critical comment is only a small part of a larger post that is about the company.

    If you read my posts on Ihub, you will notice that I never insult others, and that's why my posts don't get deleted. And BTW, if I am bashed in a post, I don't delete it myself, but ask an Administrator for a ruling, because I see my removing it as a conflict of interest.

    Of course, this board is different, and anything goes with regards to bashing members

    You're an idiot.

  • Reply to

    Up 6.2% final trade !!!

    by penystokmilionair Aug 19, 2014 5:23 PM
    cool_scirocco cool_scirocco Aug 19, 2014 5:28 PM Flag

    That was a T-Trade that happened earlier in the day but was recorded after the market closed.

    The final trade was at $3.16.

  • Reply to

    It is pretty encouraging...

    by hsangha56 Aug 19, 2014 2:55 PM
    cool_scirocco cool_scirocco Aug 19, 2014 3:11 PM Flag

    From my Seeking Alpha article:

    "Operating income was $131,892, or approximately $0.004 per basic and diluted share. While it's nice to see an operating profit, four tenths of a cent per share in operating income doesn't warrant a 25% increase in the closing price. What attracted traders was the announced twenty four cents per share in net income that was the product of a $7.9 million gain on an equity investment, attributable to the sale to Phytosphere of CannaVest's investment in KannaLife Sciences.

    "The non-cash transaction was priced at the June 2, 2014 closing price of $16.60, for a total value of $8.3 million and a net profit to CannaVest of $7.9M. This author wishes that CannaVest had explained the reason for the $8.3M valuation, because just a few weeks earlier, when CannaVest filed its 10-Q for 1Q/2014 on May 15, it stated that the KannaLife investment was worth only about $400K.

    "What happened in the intervening weeks to make this investment increase by nearly 2000%, and why would MJNA/Phytosphere agree to pay 500,000 shares at $16.60, rather than 24,096 shares at $16.60, for a total of $400,000?

  • cool_scirocco cool_scirocco Aug 19, 2014 10:15 AM Flag

    Then write an article about the positives and submit it for publication.

    Just keep it on point and supply supporting links, and I'm sure they'll publish it.

  • cool_scirocco cool_scirocco Aug 19, 2014 8:56 AM Flag

    No short position. I've never shorted CannaVest, or any OTC stock, because my TDA account won't allow it, and I don't want to set up a second account with a broker who will.

    Writing about companies like CANV is just a hobby for me.

  • cool_scirocco cool_scirocco Aug 19, 2014 12:21 AM Flag

    Actually, I did write it.

  • Article analyzes the report and notes the termination of the contract with HempMeds.

  • cool_scirocco cool_scirocco Aug 14, 2014 10:47 PM Flag

    I've been watching, but I've also been predicting, and when it comes to their path, I've been correct nearly every time.

    Their growth in the first half of 2013 is to a large extent, due to the formation of KannaWay, a multi-level marketing company/scheme. KannaWay went live in April, and so there was an initial spike of revenue in 1Q and 2Q.

    Based on various observations, KannaWay is already beginning to burn out, which means that sales of the other products will have to pick up the slack.

    I had been basing my analysis on the idea that CANV would achieve $3.5M of product sales, which they missed by $500K.

    I think that CANV will be lucky to achieve operating EPS of $0.04 in 2014, and $0.07 in FY2015.

    They're going to burn through a fair amount of cash in the next six months, as they pay the contracts for the hemp and set up their own sales operation and website.

  • cool_scirocco cool_scirocco Aug 14, 2014 7:46 PM Flag

    Been watching and writing about CANV and MJNA for over a year now, and while I can't say I'm very good at picking day-to-day stock prices, I've been pretty much dead-on with analyzing their business.

    As more states legalize CBD from marijuana strains like Charlotte's Web (reclassified as hemp to allow import,) CANV will come up against an increasing number of cheaper competitors. A one month supply of 15% - 17% CBD oil from Charlotte's Web costs about $600, while an equivalent supply of 15% RSHO costs about $2600.

    That's because industrial hemp stalk oil (which CANV starts with) is only 3% CBD max, so a lot of processing is required to get the concentration to 15% (which also increases the THC to nearly 1%). The oil from Charlotte's Web starts at 15%, so no expensive extraction and concentration is required.

  • cool_scirocco cool_scirocco Aug 14, 2014 6:45 PM Flag

    Which will increase their expenses (HempMedsPX hasn't been very profitable. $50K on $3.1M in sales in 1Q/14).

  • cool_scirocco cool_scirocco Aug 14, 2014 4:55 PM Flag

    HempMedsPX was not just a website.

    HempMeds also had a sales team, and they spent a fair amount of money attending trade shows and marketing the products.

    I know this because the people on the MJNA ihub board who love MJNA were constantly posting photos of the various shows on that board, highlighting HempMedsPX's booth and displays.

  • cool_scirocco cool_scirocco Aug 14, 2014 4:23 PM Flag

    No, they did get revenue from sales of products through HempMedsPX ($3M in 2Q/14,) but they terminated that agreement. BTW, operating EPS was only $0.004/share.

  • Reply to

    jayrodman585! you got screwed with your short

    by jerrydanials Aug 14, 2014 4:14 PM
    cool_scirocco cool_scirocco Aug 14, 2014 4:21 PM Flag

    Actually, he's right.

    Because CANV terminated the contract with HempMedsPX, they have no sale force or distribution/shipping partner. They're going to have to build or hire one.

    The $7.9M in revenue from the sale of the KannaLife investment to MJNA is somewhat phoney too, because on May 15, in CANV's 1Q/14 10-Q, it valued the KannaLife investment at $400k. Two weeks later, they sell it to MJNA for $7.9M (500K shares) of the CANV stock that CannaVest gave to MJNA/Phytosphere when CannaVest bought the Phytosphere hemp oil manufacturing operation from MJNA.

    The EPS from operations (non-GAAP) was only $0.004.

  • cool_scirocco cool_scirocco Aug 14, 2014 4:12 PM Flag

    Yeah, 100% of their operating revenue came from MJNA/HempMedsPX.

    One thing that may have caused the friction is that when MJNA/HempmedsPX and CANV worked out the distribution deal, it specified that MJNA couldn't carry similar products to those of CannaVest (Cibdex, Cibaderm, and RSHO). The Dixie Botanicals tinctures are very similar to Cibdex, and it's possible that once Red Dice Holdings separated from Tripp Keber's Dixie Elixirs after the arbitration, and MJNA received sole ownership of the Dixie Botanicals products, CANV told them they had to stop making them under the contract.

    If MJNA/HempMedsPX refused, then that might have caused CANV to pull away.

    Until now, CANV has not had any internal sales force, nor the ability to ship product to end customers or retailers. They'll now have to build or contract that service.

  • cool_scirocco by cool_scirocco Aug 14, 2014 11:27 AM Flag

    The 10-Q indicates that CannaVest terminated its contract with MJNA's HempMedsPX on August 11, for various causes:

    "On August 11, 2014, the HempMeds Agreement was terminated by the Company in accordance with the terms of the HempMeds Agreement which permitted the Company to terminate the HempMeds Agreement in the event of certain defaults by HempMeds. The Company had previously notified HempMeds that it was in breach of various provisions of the HempMeds Agreement including provisions regarding HempMeds distribution of competing products, the requirement that HempMeds obtain prior approval of marketing and promotional materials, the Company’s ability to access HempMeds sales data, and HempMeds payment of amounts due under the HempMeds Agreement, amongst others."

    HempMedsPX was CANV's only sales and distribution partner (100% of sales went through HempMeds).

    Unless this is a bargaining chip, CANV will now have to buy or build a sales and distribution channel.

  • cool_scirocco cool_scirocco Aug 8, 2014 9:29 PM Flag

    So your argument boils down to: because another low-float company with a lot of restricted shares that will come off restriction in five months has a $500M market cap, so should CANV?

    Sorry, but it doesn't work that way.

  • cool_scirocco cool_scirocco Aug 8, 2014 7:19 PM Flag

    Why would a company with maybe $13M sales in 2014 deserve a $500M market cap?

  • Reply to

    Did anyone attempt to call the company?

    by hsangha56 Aug 7, 2014 12:14 PM
    cool_scirocco cool_scirocco Aug 7, 2014 4:49 PM Flag

    Jimmy,

    Mackay and his companies (Mai Dun and Mercia) filed a form 4 on July 25. It shows that he bought 100K shares of the $1 offering, 10M shares were the $0.60/share Roen Loan conversion, and the two other transactions were Mai Dun and Mercia shares being moved around (those shares came from the original buyout of Foreclosure Solutions).

    The only way we know how many outsiders bought is that the OS increased by 10M shares, but only a few insiders filed forms showing they acquired some.

    Michael Mona III (the CEO's son, and a CANV employee) bought 1.2M shares for a trust, the former director Sobieski, bought 50K shares (he's no longer a director, so he could sell,) and then there's Mackay's 100K. That's about 1.5M shares, there might be some other insiders who bought but didn't need to file because they're not officers.

    So maybe my 5M - 7M guess is too low. Maybe non-affiliates bought 8M shares, but none bought enough to reach the 5% threshold where they had to report.

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